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Old 05-20-2013, 10:02 AM   #1
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Diesel Prices in NJ

So far I've noticed that road diesel is about $3.44 in nj, while marine diesel is $3.99

Can anyone explain this?
Other than the obvious (boat owners will pay anything)
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Old 05-20-2013, 10:49 AM   #2
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You might want to check this site
Waterway Cruising Guide | Fuel Pricing
It crowd sources fuel prices all over but i like to look at the Port Isabel Texas numbers as they are about as low as it gets. Diesel right now $3.19

I will take a stab at the price differences
For most marinas there are four issues which contribute to the high price
1) expensive locations on the water and a less than 12 month season to amortize that cost
2)expensive liability insurance
3)proportionately higher staffing costs per gallon pumped because of the need to dock the boats
4) lower annual volumes in most cases compared to street stations which means higher per gallon costs from suppliers
I think some marinas can and do gouge a bit just because they can but it is also true that they face more fiscal challenges.

Some larger boats can call for a fuel truck but more and more that is being restricted.
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Old 05-20-2013, 10:51 AM   #3
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Sure. I give you three reasons. You can determine the legitimacy of each, because I am not in the fuel supply business nor a mouthpiece for the industry.
1. Seasonal use. Marine fuel dealers have to make their annual profit in a five to six month season in your neck of the woods versus a twelve month season for highway suppliers. I don't know what their excuse is in the South.
2. Additives. You may be getting fuel pre-conditioned for marine use, such as the ValvTect blends, which do not need the user to purchase separate additional fuel additives.
3. To stay in business in NJ the dealer has to offset the nearly confiscatory tax burden of property taxes where he could, and maybe should, sell the place to developers who will turn your fuel stop into waterfront condos.

In my area diesel is $4.04/9 at the dock. Non-highway use diesel may be had for $3.55/9 at some gas stations which are set up to pump it that way. If you wish, you may fill and carry yellow 5 gal. cans to your boat.
Because I am an incredible cheapskate and because it is good exercise to carry the full cans, I sometimes do that. The downside is that it doesn't make much of a dent in a nearly empty 300 gallon tank to fill it 15 or 20 gallons at a time. When done for occasional fun to keep topped-off its not really a bad idea, but I'm not pushing it as your solution to high fuel costs.
Some prima donnas wouldn't carry a gallon to their boat, but that is entirely their decision.
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Old 05-20-2013, 11:49 AM   #4
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It is true that some people refill their own tanks. I know one owner who has a pickup truck bed tank who buys coloured fuel (nontax for off road or heating) and can drive right up to his boat and fill.

This works OK but many marinas specifically forbid it. I note my contract this year has a clear restriction on filling my own and it is not because they even sell fuel. I believe it has to do with their own liability for the owner's possible spill. If the marina followed the letter of the contract I couldn't even keep a two gallon jug of fuel for my tender

I thank it might also be a clause that is geared to the safety issues surrounding the transfer of more volatile gasoline and the subsequent risk of a marina fire. Diesel just gets caught up in the net.

You can check the land fuel price heat map here
Gas Price Heat Map - Detroit Gas Prices

If you check regularly you will see that the prices cycle around a fair bit geographically. Right now Minnesota is very high and South Carolina and the gulf states are pretty good Diesel seems to be about .20 cents more than gas but in some spots it is narrowing.

I am as much of a cheapskate as anybody but I am generally happy at the US marine based $4.00 range as Canadian prices for the equivalent marine based (converted for gallon size) are closer to $6.00
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Old 05-20-2013, 02:55 PM   #5
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Obviously the economics of a marine fuel dock and a shoreside gas station are vastly different.

But I think another huge difference is that boaters will gladly overpay thinking they're getting a "better" product.

Sellers want to distinguish their brand and convince people to pay more for it. They don't want you to know that all the tanker trucks that supply their stations fill from the same fuel depot. They use brand names and logos, or toss in a few "special" additives (such as "Valvetech") to try to convince you their brand is better.

If enough buyers fall for those gimmicks, and are willing to pay more for their fuel than they have to, then the sellers would be foolish not to charge that higher price.
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Old 05-21-2013, 10:48 AM   #6
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Thanks.
About what i expected.
I'll try to find a good way to fill up this summer.
I'll want about 500 gallons, so it is worth my while to save $0.40 a gal

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Old 05-21-2013, 01:07 PM   #7
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I'll want about 500 gallons, so it is worth my while to save $0.40 a gallon.
Around here, 500 gallons is the magic number above which you can buy right from a truck and pay no road taxes or delivery fee. It's just like having home heating oil delivered, although there are rules about where you can get it delivered, and who can deliver it. Ask at any commercial marina or fish pier.
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Old 05-21-2013, 02:33 PM   #8
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I am curious about states where you pay the "road tax" for marine diesel as Cap't Tom mentioned. In Wa, you pay the road rate in many places but can seek a refund of the tax from the state for the marine, non-road use. I know at Elliott Bay Marina here in Seattle they have the forms for the tax rebate right in the shop. Is this not the case in all states?
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Old 05-22-2013, 10:27 AM   #9
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Can you recommend any place in particular in Maine?
I will be coming that way in early July.

Richard
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Old 05-23-2013, 12:13 AM   #10
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Downeast Diesel or many others will deliver by truck to you in Maine. We did this last summer and saved a bunch.
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Old 05-23-2013, 09:42 AM   #11
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Interesting - when we filled up last fall in VA, the price at the dock was a few cents lower than at the gas station. In VA, if you ger red diesel at the dock (we do) then there is no road tax on it and no refund. While it was a few cents lower on the water, the difference was not as much as the tax. So, yes, you do pay a premium on the water. Another thing I've noticed is that that while the gas station prices around here fluctuate a lot, the water prices at some marinas only change when they get a new load of fuel. It actually went down 10 cents when they got a fresh load this spring (so much for filling up in the fall).
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Old 05-23-2013, 02:46 PM   #12
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Out in the west - I paid $3.45 (plus sales tax) for ValvTect at the Island Marine fuel dock in Newport Harbor last week. I thought that was quite the bargain. Even with the tax, it's pretty close to the Ensenada price.
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Old 05-23-2013, 04:10 PM   #13
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Quote:
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Can you recommend any place in particular in Maine?
I will be coming that way in early July.
You got this by PM, but I figured I'd post it here for everyone. Giving it some thought, if you have several hundred miles' range at least, New Hampshire would be my recommended fuel stop going North from NYC. You have state-run, pay-at-the-pump facilities in Rye and Portsmouth, and the Wentworth, a large marina in New Castle on Little Harbor that has good diesel prices to begin with, and offers a discount for amounts over 500 gallons.
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Old 05-23-2013, 05:03 PM   #14
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The prices you pay for diesel in the states just about covers the taxes on fuel here in Denmark!

The price for diesel at my local gasstation right now is 7.35$ pr. Gallon
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Old 05-23-2013, 05:15 PM   #15
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Can you recommend any place in particular in Maine?
I will be coming that way in early July.

Richard
In the Rockland, ME, area call Maine Coast Petroleum 207-372-6962 (mainecoastpetroleum.com). Often they are out and about with a fuel barge. If not, they will meet you at their pier in Rockland with a truck.
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